This research aims to examine the drivers of earnings quality (EQ) in emerging stock markets. By testing the impact of firm attributes and ownership structures on the level of earnings quality. The research followed a mixed-method approach (qualitative and quantitative) and was conducted based on a sample of 75 listed firms in Egypt as an emerging market from 2015 to 2022. The results of the research found that each firm attribute has a mixed impact on earning quality, such as firm size (positive on persistence and no impact on consistency) and ROA (U-shape on persistence and consistency). In addition, ownership structures uniquely and dynamically impact earnings, following positive, U-shape, and N-shape. This research sheds light on the drivers of the earnings quality (firm attributes and ownership structures) in the Egyptian-listed firms and helps policymakers implement appropriate corporate governance mechanisms. Our findings in Egypt can motivate future research to further investigate the most relevant factors that explain variations in earning persistence and consistency as a dimension of financial reporting quality in other emerging markets.

The research aims to unveil the impact of CEO traits and firm attributes on corporate environmental, social, and governance (ESG) performance within the Egyptian context as an emerging market. Using the quantitative research approach, we analyzed a panel of data from 43 listed firms in the S&P/EGX ESG index from 2014 to 2022 through three statistical models to examine how CEO power, confidence, and tenure influence corporate sustainability practices. Our findings reveal that CEO power and confidence influence ESG performance and shape the firm’s strategy. However, there is no significant influence related to CEO tenure. Moreover, we found mixed evidence regarding the impact of firm financial attributes, such as the positive impact of firm size and operating cash flow on ESG performance and the negative impact of firm listing tenure. Our findings contribute to the literature by adding new empirical evidence in this arguable area from an emerging market and provide new insights into the significant influence of the firm’s first man (CEO) in shaping its sustainability practices, especially ESG. In addition, it gives professional authorities and policymakers insights into the nexus between the CEO and the firm’s ESG strategies, disclosure, and performance. Moreover, it can motivate future research to re-examine the role of CEO traits in shaping ESG performance in other countries to create a comprehensive understanding of this knowledge field.

This study aimed to analyze the determinants of disclosure tone (DT) in the Saudi business environment during the last nine years. In addition, it tested the impact of earnings management and accounting conservatism on this tone. The study followed a mixed-method approach, “quantitative and qualitative”, to explore the relationships used for the content analysis to analyze the annual reports of a sample of 88 Saudi-listed firms from 2014 to 2022. The results of the study found that there is a positive impact of dividend yield on disclosure tone. Conversely, both firm size and leverage do not have a significant impact. Moreover, earnings management as an accounting practice has a curvilinear effect on disclosure tone, and accounting conservatism as a generally accepted principle positively influences disclosure tone.

Purpose: This study investigates the multi-dimensional nature of corporate risk-taking by examining how governance mechanisms exert differing pressures on accounting-based stability versus market-perceived volatility in the Saudi context, as the biggest emerging market in the Middle East. Moreover, the research uses accounting conservatism as a critical moderating variable and the sample is partitioned into high-conservative and low-conservative groups. Design/methodology/approach: The research analyzed data from 69 non-financial listed firms from 2017 to 2024 using four statistical models. Corporate risk-taking values have been captured from both accounting-based and market-based perspectives. Moreover, managerial, institutional, and concentration ownership have been used to capture ownership structure. However, board size, independence, and CEO power have been used to capture board structure. Findings: The research findings reported three main results: (1) Ownership structures have an asymmetric impact on accounting-based corporate risk-taking, as managerial and institutional ownership take a U-shaped curve, but ownership concentration has a positive impact. Moreover, from market-based corporate risk-taking, managerial and institutional ownership have a negative impact, but ownership concentration has a positive impact. (2) Board structures have an asymmetric impact on accounting-based corporate risk-taking, as managerial and institutional ownership have a negative impact, but ownership concentration has an inverted U-shaped impact. Moreover, from market-based corporate risk-taking, managerial and institutional ownership have no significant impact, but ownership concentration has a negative impact. (3) Accounting conservatism can change the nexus between ownership structure, board structure, and corporate risk behavior. Research limitations/implications: The research has many implications. For policymakers, the results discovered the role of ownership and board structures in shaping corporate risk-taking behavior in the Saudi context. Moreover, we have provided evidence-based guidance for governance reforms and firm-level decision-making. Moreover, the results can be incorporated by investors and creditors into their risk assessment frameworks, improving portfolio allocation and credit evaluation. Originality/value: The research captured corporate risk-taking behavior in the Saudi context from two perspectives at the same time. Likewise, it provides new empirical evidence that accounting conservatism can have a role in risky behavior.

Purpose: This research aims to examine the impact of accounting conservatism on investment efficiency and the cost of capital within the Saudi Arabian corporate context following the implementation of Saudi Vision 2030. Methodology: This study analyzes panel data from 105 non-financial listed firms on the Saudi Stock Exchange (Tadawul) from 2016 to 2024. To fulfill the structural requirements for measuring investment efficiency, the sample is restricted to sectors containing a minimum of 10 firms. The empirical framework relies on four robust Ordinary Least Squares (OLS) econometric models to evaluate the hypothesized relationships. Findings: The empirical findings indicate two primary results. First, accounting conservatism exerts a significant positive impact on investment efficiency. Second, statistical tests reveal that accounting conservatism has a nuanced, asymmetric, and non-linear impact on the components of the cost of capital—specifically, the weighted average cost of capital (WACC), cost of equity (COE), and cost of debt (COD)—when conditioned across three distinct regimes: the full sample, underinvesting firms, and overinvesting firms. These results challenge traditional linear assumptions, indicating that a state-contingent framework better explains market reactions to financial reporting strategies. Implications and Recommendations: The findings suggest that decision makers should abandon the assumption that maximizing accounting conservatism is a universally risk-averse or beneficial strategy. Instead, corporate managers should treat accounting conservatism as a strategic instrument governed by definite thresholds, as its impact on financing costs is deeply tied to a firm’s structural investment realities. Regulatory bodies and standard setters in the Saudi market are encouraged to integrate these non-linear insights when evaluating the capital market effects of financial transparency reforms.